dividends paid

CGI GROUP INC. $38 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 311.7 million; Market cap: $11.8 billion; Price-to-sales ratio: 1.1; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer outsourcing services. CGI helps its clients automate routine functions, like accounting and buying supplies. That makes them more efficient and lets them focus on their main businesses.

Two-pronged strategy spurs results

CGI follows what it calls a “Build and Buy” strategy. The “Build” part refers to expanding relationships with existing clients and attracting new ones. The company’s long-term outsourcing contracts give it steady, predictable revenue streams. They also let CGI sell these clients other services.

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AURICO GOLD $4.36 (Toronto symbol AUQ; TSINetwork Rating: Speculative) (604-681-2802; www.auricogold.com; Shares outstanding: 248.5 million; Market cap: $1.0 billion; Dividend yield: 0.4%) operates the El Chanate gold mine in Mexico. The company also started up its Young-Davidson gold project in northern Ontario last year. It’s now at full production. In the three months ended June 30, 2014, AuRico’s production jumped 47.2%, to 56,198 ounces from 38,186 ounces a year earlier. That increased its revenue by 31.0%, to $75.5 million from $57.7 million. Cash flow per share declined to $0.05 from $0.08. The company’s costs rose as it moved from open pit to underground mining at Young-Davidson, but they should fall as AuRico completes the mine’s new infrastructure....

IAMGOLD $2.80 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 376.7 million; Market cap: $1.0 billion; No dividends paid) is selling its Niobec niobium mine in Quebec’s Saguenay- Lac-Saint-Jean region. When used as an additive, niobium makes steel stronger, more heat-resistant and easier to weld. The company will receive $500 million U.S. when the sale closes later this year. It will get another $30 million U.S. when an adjacent deposit of rare earth elements goes into production. Following the sale, the company will hold cash and gold bullion worth over $800 million U.S. That puts IAMGold in a strong position to pay down its long-term debt of $641 million U.S....

ADOBE SYSTEMS INC. $62.19 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 498.7 million; Market cap: $30.4 billion; No dividends paid) reported a 12.5% earnings decline in the quarter ended August 29, 2014, to $0.28 a share from $0.32 a year earlier. Revenue rose 1.0%, to $1.0 billion from $995.1 million. The company continues to shift away from selling software as a one-time purchase and toward a subscription model. That hurts Adobe’s short-term sales and profits, but it should bring more predictable revenue streams as users continue to switch over. The stock now trades at 30.8 times the $2.02 a share that Adobe will likely earn in 2015. That’s a high p/e ratio for a company that mainly serves customers in cyclical businesses like publishing....

LEON’S FURNITURE LTD. $14.00 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 71.0 million; Market cap: $1.0 billion; Dividend yield: 2.9%) has steadily opened new stores, growing from 27 in 2003 to 79 today. But the company more than quadrupled in size overnight with its March 2013 purchase of its main rival, The Brick, for $700 million. The Brick has 222 locations across Canada. The chains continue to operate separately. In the quarter ended June 30, 2014, the company’s sales fell 1.3%, to $474.5 million from $480.6 million a year earlier. The year-ago quarter included the first full three months of sales from The Brick. On a samestore basis, sales declined 1.3%....

ATLANTIC TELE-NETWORK $58.52 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 15.9 million; Market cap: $914.6 million; Yield: 2.0%) raised its quarterly dividend by 7.4%, to $0.29 a share from $0.27, with the October 2014 payment. It now yields 2.0%. Atlantic closed the sale of its Alltel wireless business to AT&T (symbol T on New York) late last year. It now holds cash of $407.6 million, or $24.64 a share, and has paid off its $271.1 million of debt. The company could use its high cash balance to make acquisitions or expand its remaining operations. It could also make further dividend increases or pay special dividends....

CGI GROUP INC. $38 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 311.7 million; Market cap: $11.8 billion; Price-to-sales ratio: 1.1; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer outsourcing services. CGI helps its clients automate routine functions, like accounting and buying supplies. That makes them more efficient and lets them focus on their main businesses. Two-pronged strategy spurs results CGI follows what it calls a “Build and Buy” strategy. The “Build” part refers to expanding relationships with existing clients and attracting new ones. The company’s long-term outsourcing contracts give it steady, predictable revenue streams. They also let CGI sell these clients other services....

BELLATRIX EXPLORATION $5.24 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403- 266-8670; www.bellatrixexploration.com; Shares outstanding: 191.1 million; Market cap: $1.1 billion; No dividends paid) is now trading on the New York Stock Exchange, also under the BXE symbol.

Bellatrix originally listed its common shares on the NYSE MKT (formerly the American Stock Exchange) on September 20, 2012. Switching to the main New York exchange should raise its profile and increase its liquidity.

The company has also formed a new joint venture with Grafton Asset Management. Under the deal, Grafton will contribute $250 million toward the development of some of Bellatrix’s extensive landholdings in Alberta. Bellatrix will also commit $250 million. To put that in context, Bellatrix’s cash flow was $148.7 million, or $0.84 a share, in the first half of 2014.

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ADOBE SYSTEMS INC. $62.19 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 498.7 million; Market cap: $30.4 billion; No dividends paid) reported a 12.5% earnings decline in the quarter ended August 29, 2014, to $0.28 a share from $0.32 a year earlier. Revenue rose 1.0%, to $1.0 billion from $995.1 million.

The company continues to shift away from selling software as a one-time purchase and toward a subscription model. That hurts Adobe’s short-term sales and profits, but it should bring more predictable revenue streams as users continue to switch over.

The stock now trades at 30.8 times the $2.02 a share that Adobe will likely earn in 2015. That’s a high p/e ratio for a company that mainly serves customers in cyclical businesses like publishing.

...

IAMGOLD $2.80 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 376.7 million; Market cap: $1.0 billion; No dividends paid) is selling its Niobec niobium mine in Quebec’s Saguenay- Lac-Saint-Jean region. When used as an additive, niobium makes steel stronger, more heat-resistant and easier to weld.

The company will receive $500 million U.S. when the sale closes later this year. It will get another $30 million U.S. when an adjacent deposit of rare earth elements goes into production.

Following the sale, the company will hold cash and gold bullion worth over $800 million U.S. That puts IAMGold in a strong position to pay down its long-term debt of $641 million U.S.

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